Monster Beverage seen getting a boost from improving sales

Cans of Monster Energy Drink are displayed on a shelf at a convenience store in Kentfield, Calif.

Monster Beverage shares could get a lift from improving sales and profitability in the coming years, Credit Suisse said in a research note reiterating its outperform rating on the beverage maker.

International advances with the help of Coca-Cola should also benefit the firm, analyst Laurent Grandet said.

Monster Beverage's sales growth will "benefit from marginal share gains in the US with the return of Java Monster, innovation beyond core energy (Mutant, Hydro, and Caffe Monster), increased presence in the on-premise channel and international expansion," Grandet wrote in a note to clients Wednesday. "Monster remains our sector Top Pick as we continue to expect that FY17 will be a year of sales growth and we see profit upside as underlying operating margins surpass 40% by FY19."

Based in Corona, California, Monster Beverage owns numerous drink brands, including Monster, Java Monster, and Mutant. Through its strategic partnership with Coco-Cola, Monster Beverage has increased its international distribution; the company is about to launch in Argentina, Pakistan, and India.